Escalate case study one : contract dispute client (£107,000)

Background

We recently engaged a contract dispute case in which the client was owed £107,000. The dispute was a few years old and originally the client thought it was delayed/bad debt so they instructed their local solicitor to deal with the dispute. This was unsuccessful and resulted in the defendants counter claiming for £300,000 in attempt to scare the client.

The client tried to negotiate with the defendants and they were prepared to accept a 50% discount to get the matter resolved, but the defendant was unprepared and instead stated ‘take us to court then if you can’. At no point during the last few years has the claimant made any attempt to pursue the counter claim indicating that it was nothing more than a scare tactic.

The client then engaged a well known law firm in Birmingham to help them recover their £107,000 and this was taken on with the client being charged circa £25,000 in fees before the law firm advised that there was nothing more they could do for them and did not litigate because ‘the costs vs returns didn’t stack up’. So the client was left with no recovery, 2 years of lost time and fees incurred equal to 25% of the original claim.

How did Escalate help?

The client heard about Escalate and made contact with the team and we have subsequently engaged the case and are now pursuing. On the basis the client is happy for a 50% recovery (we are looking for 100% plus historic costs if possible), we are hopeful that we will be able to negotiate this through in path A, however we are very certain that if we can’t then the moment it drops into Path B then mediation/settlement will happen.

Why Escalate?

If you have a unresolved dispute, Escalate can help you to avoid wasting your time and money pursuing disputes with unsuccessful outcome.